Editorial: Why iOS in the Car is a very big deal for Apple

24

Comments

  • Reply 21 of 77

    Quote:

    In keeping with the company's secretive licensing terms for its Made For iPod (MFi) program, Apple hasn't released pubic details about how it plans to sell iOS in the Car. 


     


    Was it intended to be subliminal, this apparent Freudian slip?  Shirley the author paid close attention to this first sentence of his article.  Can't be accidental... the old "public" / "pubic" switcharoo is just too easy to spot.  And yet, there it is....  


     


    We've not seen a pubic marketing campaign relating to Apple since the colorful iMacs debuted:  http://video.tvguide.com/iBrator++Colors/20002616  And even that was a parody.


     


     


    EDIT: Now, a day later, I see the story has been post-edited, to make pubic public.  Oh well, it was fun while it lasted.  :)

  • Reply 22 of 77
    normmnormm Posts: 575member


    The key issue here is synchronization.  I like iPhone integration in the car because all of my contacts are available as driving destinations, all of my music, music apps and podcasts are immediately playable on the car speakers, just where I left off.  Siri knows how to access my voicemail and texts and email accounts.  Phone calls are hands free, with controls on the dash and on the steering wheel.


     


    All of this works well with my iPhone in charge.  It would be nice if the car UI were better integrated though, so my Maps.app displays directly on the car display, rather than my iPhone display.  And the car can have a better GPS antenna, and compass compensation for engine magnetic fields, etc., so probably we should use that too.


     


    I think Daniel is probably right that the car will contain an iOS device that can be used on its own.  But having it work completely independently means it needs a robust (read, expensive) data plan, to access iCloud contacts and music, etc.  So I expect that most people will just use the car iDevice to share sensors and be an interface to their iPhone.


     


    They'll love the Find My iCar feature, though!

  • Reply 23 of 77
    macxpressmacxpress Posts: 5,001member


    It may be a big deal, but I'm not sure it will take off. We'll see how much car manufacturers want to give up. 

  • Reply 24 of 77
    normmnormm Posts: 575member

    Quote:

    Originally Posted by anantksundaram View Post


    The total car market worldwide annually is about 65M (growing, perhaps at about 2 - 3% per year). Let's say Apple can capture 25% of the market, and can charge $750 to the manufacturer (who will probably double the price to the consumer).


     


    That's a revenue opportunity of ~$12B. At a profit margin of 20% - 25%, that's $2.4B - $3.0B in incremental earnings, good for $36B - $45B in additional market cap, assuming a (I wish!!) P/E ratio of 15x (the long-run average for the US stock market). That's ~10% of the current market cap, or $40 - $50 extra per share.


     


    Not bad, but it's not huge. (However, it's important for Apple to do this, so as to signal to the market that it is pursuing all major innovation and growth opportunities).



    The annual market for new cars containing a $1500 radio is not 65M.  Basic sound integration, letting you play your iDevice sound through the car speakers, seems like it will be a baseline feature, not something they can charge much for.  And hands free calling doesn't require much intelligence in the car either; adding a mic to the car is enough to allow Siri integration for most iPhone capabilities.  So I think the $1500 iRadio is a really tiny part of this market.  In my opinion, better iOS car integration is important as an ecosystem component for Apple, rather than as a direct revenue stream.

  • Reply 25 of 77
    jragostajragosta Posts: 10,473member
    <div align="center"><img src="http://photos.appleinsidercdn.com/Newton.Pippin.jpg" alt=""><br><span class="minor2">Newton & Pippin</span></div>
    .

    I miss Pippin. At the time, that could have been a HUGE opportunity. While other set top vendors were selling gaming consoles, Apple could have had a gaming console AND full blown computer in a box for roughly the same price. Too bad Bandai dropped the ball (or Apple pulled the plug - whatever actually happened).
  • Reply 26 of 77
    anantksundaramanantksundaram Posts: 19,416member
    normm wrote: »
    The total car market worldwide annually is about 65M (growing, perhaps at about 2 - 3% per year). Let's say Apple can capture 25% of the market, and can charge $750 to the manufacturer (who will probably double the price to the consumer).

    That's a revenue opportunity of ~$12B. At a profit margin of 20% - 25%, that's $2.4B - $3.0B in incremental earnings, good for $36B - $45B in additional market cap, assuming a (I wish!!) P/E ratio of 15x (the long-run average for the US stock market). That's ~10% of the current market cap, or $40 - $50 extra per share.

    Not bad, but it's not huge. (However, it's important for Apple to do this, so as to signal to the market that it is pursuing all major innovation and growth opportunities).
    The annual market for new cars containing a $1500 radio is not 65M.

    Didn't say it was. Read.
  • Reply 27 of 77

    Quote:

    Originally Posted by AppleZilla View Post


    Planning to get the new Corvette, but probably a 2015, not a 2014. Hopefully iOS will be on board.



    Good idea...US auto makers don't have a good reputation for the first run models.

  • Reply 28 of 77
    dasanman69dasanman69 Posts: 12,985member
    drblank wrote: »
    Any new car technology usually comes out on the more expensive models first and then it takes years, generally decades before it becomes standard on all models.

    New car technology is usually used in race cars first.
  • Reply 29 of 77
    dasanman69dasanman69 Posts: 12,985member
    Nice try.

    Try answering the question.
  • Reply 30 of 77
    dasanman69dasanman69 Posts: 12,985member
    lkrupp wrote: »
    Nope. Just you and two other guys. Thats it.

    So you leave your phone open to whomever might get their hands on it?
  • Reply 31 of 77
    steven n.steven n. Posts: 1,127member
    relic wrote: »
    Can you give us an example where any of their systems have been intrusive, GUI wise, not what happens in the background please.

    My thought would be really thick allotment of advertisements on a basic search results page. Search for information on an iPhone SDK question and an ad for a GS4, an Optimus G, a Dell computer might all show up taking p the first 2/3 of the results.
  • Reply 32 of 77
    Anyone notice the editorial said pubic instead of public lol
  • Reply 33 of 77
    bzzlinkbzzlink Posts: 10member


    I think the author is way off on this one.


     


    If you think about it, having a separate device, box or thing-a-majing in the car that runs iOS would cause all sorts of hassle. Syncing contacts, updating software on it etc.


     


    I bet my 0.02$ on this being an expansion of the MFi program.


     


    You get out of my dreams, and into your car, and BOOM. Your car is a remote control for your apple device (running iOS7 or later) 


     


    Same basic concept as widi

  • Reply 34 of 77
    acatomicacatomic Posts: 60member
    Crap no one will use is more important than something everyone uses?

    Why call it crap?

    Every time you download a app or make a purchase you'll be using your fingerprint instead of your Apple ID password. Easy and safe to use it will slowly but surely make e-wallet a mainstream thing.
  • Reply 35 of 77
    dick applebaumdick applebaum Posts: 12,524member
    Hmmm...

    Honest question here -- as I have not see it mentioned.

    [B][I]What about in-car entertainment systems?[/I][/B] These range from a $1,000 DVD Player/Screen to $6,500 Split Screen DVD/Game Player.

    Each of my 3 grandkids has a WiFi 64GB iPad 2. They use these constantly around the house... But even more so on long car trips -- They just returned from an annual trip to Canada to visit their paternal grandfather -- 2 days of driving each way. Before they go, we load up each iPad with as many videos that will fit -- putting different videos on each iPad... so we get about 15-20 videos (20-40 hours of viewing) across the 3 devices. They also have a lot of apps, games and books on each iPad.

    Anyway, each grandkid has 30 hours, or so, of unique videos to watch and a virtually unlimited amount of reading and game-playing. * If they feel creative, they can use an app like iPhoto, iMovie, etc. to create custom content that later (within WiFi range) can be uploaded/shared through iCloud.

    * at this point they cannot play multiplayer games -- ad hoc PTP WiFi anyone?

    Anyway, one of the biggest advantages is that they can take the devices with them into restaurants, motels, camping, or the destination residence and[B] [I]continue their in-car-entertainmnt while out of the car![/I][/B]

    A secondary advantage to this "removable" in-car-entertainment is that the vehicle is not a sitting target for anyone looking to steal expensive electronics.


    I suspect, that if iOS in the Car could provide entertainment -- store/serve movies and support multiplayer iPad gaming -- that no one could touch it for advantages and price!
  • Reply 36 of 77
    dick applebaumdick applebaum Posts: 12,524member
    I won't use a phone, handsfree or not, or any other electronic device while I'm driving. Why? It's distracting. It's dangerous. When you are driving a car, you need to drive safely. Nothing else.

    Mmm... do you look at the speedometer, gas gage, warning lights, HiBeam lite, mirrors, side windows, fiddle withe hear/vent/air, play the radio or a CD... All are distractions, no? All but the last 2 are necessary for safe comfortable driving!
  • Reply 37 of 77
    dick applebaumdick applebaum Posts: 12,524member
    The total car market worldwide annually is about 65M (growing, perhaps at about 2 - 3% per year). Let's say Apple can capture 25% of the market, and can charge $750 to the manufacturer (who will probably double the price to the consumer).

    That's a revenue opportunity of ~$12B. At a profit margin of 20% - 25%, that's $2.4B - $3.0B in incremental earnings, good for $36B - $45B in additional market cap, assuming a (I wish!!) P/E ratio of 15x (the long-run average for the US stock market). That's ~10% of the current market cap, or $40 - $50 extra per share.

    Not bad, but it's not huge. (However, it's important for Apple to do this, so as to signal to the market that it is pursuing all major innovation and growth opportunities).

    What's the potential if iOS in the car drives sales of companion iDevices that would provide in-car/removable entertainment?

    So, the package from the dealer might include:
    • iOS In the Car
    • iOS In the Car entertainment media/storage server WiFi
    • Sharable Cell Radio
    • iCloud Access
    • an iPad for each passenger

    Seems like a potentially source of profit
  • Reply 38 of 77
    dick applebaumdick applebaum Posts: 12,524member
    normm wrote: »
    The key issue here is synchronization.  I like iPhone integration in the car because all of my contacts are available as driving destinations, all of my music, music apps and podcasts are immediately playable on the car speakers, just where I left off.  Siri knows how to access my voicemail and texts and email accounts.  Phone calls are hands free, with controls on the dash and on the steering wheel.

    All of this works well with my iPhone in charge.  It would be nice if the car UI were better integrated though, so my Maps.app displays directly on the car display, rather than my iPhone display.  And the car can have a better GPS antenna, and compass compensation for engine magnetic fields, etc., so probably we should use that too.

    I think Daniel is probably right that the car will contain an iOS device that can be used on its own.  But having it work completely independently means it needs a robust (read, expensive) data plan, to access iCloud contacts and music, etc.  So I expect that most people will just use the car iDevice to share sensors and be an interface to their iPhone.

    They'll love the Find My iCar feature, though!

    LOL! Just watched an old Seinfeld show where Cosmo really could have used that!
  • Reply 39 of 77
    relicrelic Posts: 4,735member
    dasanman69 wrote: »
    New car technology is usually used in race cars first.

    Maybe for engines and drivetrain but I've never seen a Formula One car with a satnav or radio, must be a different circuit.
  • Reply 40 of 77
    vadaniavadania Posts: 425member

    Quote:

    Originally Posted by Relic View Post



    Biometrics used in a car door mechanism would be a pretty cool accessory.


    Only because it makes it easier for the legal owner to gain access.  If you're not the legal owner, then the glass is pretty fragile and there's even much quicker and less destructive ways to enter a vehicle.  Also, electrically, you can start almost any car in under 5 seconds without the key and disable the steering locking.  The people who smash the steering column to gain access to the wiring are literally doing more work and damage than needed.


     


    Remote starters make the task of taking a car so easy that you literally look like you own the car as you're getting in and driving away.


     


    I never have taken a car and don't have a need to but I've demonstrated it to friends many, many times.  As long as cars have an electronic ignition system you will be able to start it up faster than the owner who has the key if you know anything about electrical circuitry.  The lock on the door and the key is literally just there to give the owner a false sense of security.  ...or "to keep honest people honest" as the saying goes.

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